Dollar Tree 2011 Annual Report Download - page 49

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Employee Stock Purchase Plan
Under the Dollar Tree, Inc. Employee Stock Purchase
Plan (ESPP), the Company is authorized to issue up to
2,639,063 shares of common stock to eligible employees.
Under the terms of the ESPP, employees can choose to
have up to 10% of their annual base earnings withheld
to purchase the Company’s common stock. e purchase
price of the stock is 85% of the lower of the price at the
beginning or the end of the quarterly offering period.
Under the ESPP, the Company has sold 2,219,369 shares
as of January 28, 2012.
e fair value of the employees’ purchase rights is
estimated on the date of grant using the Black-Scholes
option-pricing model with the following weighted
average assumptions:
Fiscal
2011
Fiscal
2010
Fiscal
2009
Expected term 3 months 3 months 3 months
Expected volatility 12.6% 13.2% 17.4%
Annual dividend yield — — —
Risk free interest rate 0.1% 0.1% 1.8%
e weighted average per share fair value of those
purchase rights granted in 2011, 2010 and 2009 was
$10.43, $6.59 and $5.19, respectively. Total expense
recognized for these purchase rights was $0.9 million in
each of 2011, 2010 and 2009.
NOTE 10 – ACQUISITION
On November 15, 2010, the Company completed its
acquisition of 86 Dollar Giant stores, located in the
Canadian provinces of British Columbia, Ontario,
Alberta and Saskatchewan. ese stores offer a wide
assortment of quality general merchandise, contemporary
seasonal goods and everyday consumables, all priced at
$1.25 (CAD) or less. is is the Company’s first expan-
sion of its retail operations outside of the United States
and provides the Company with a proven management
team and distribution network as well as additional
potential store growth in a new market.
e Company paid approximately $51.3 million
including the assumption of certain liabilities. e results
of Dollar Giant store operations are included in the
Company’s financial statements since the acquisition date
and did not have a significant impact on the Company’s
operating results in 2011 or 2010. is acquisition is
immaterial to the Company’s operations as a whole and
therefore no proforma disclosure of financial information
has been presented. e following table summarizes the
final allocation of the purchase price to the fair value of
the assets acquired and liabilities assumed based on the
exchange rate in effect at the date of purchase.
(in millions)
Cash $ 1.9
Inventory 22.8
Other current assets 3.4
Property and equipment 10.1
Goodwill 39.9
Other intangibles 3.9
Debt (13.8)
Ac counts payable and accrued liabilities (16.9)
$ 51.3
Goodwill related to this acquisition is presented in
the consolidated balance sheet at the exchange rate in
effect at January 28, 2012 and January 29, 2011; however,
the opening balance sheet and resulting goodwill and
acquired intangible assets were recorded based on the
exchange rate in effect at the acquisition date.
2011 Annual Report 47